European Franchising - the Journal of European Franchise Opportunities

A 'feel good' service with happy customers

With an established franchisee network in the USA, Aussie Pet Mobile launched its first three Master Franchisees last year. Stuart Anderson speaks to Founder and CEO Ian Moses and the three investors who are taking the brand into Canada, Mexico and Japan

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Centred around a custom-designed Mercedes Sprinter van which provides a mobile base of operations, Aussie Pet Mobile has carved out a niche for itself in international franchising. Trained groomers supply a 15-step treatment that includes shampoo, massage, blow-dry, brushing, nail clipping, eyes/ears cleaning and grooming to take the hassle out of pet ownership.

"We came across the concept in Australia in 1996," reveals Ian Moses, who founded the company with his wife Vivienne McIntosh. "Because of our busy lifestyle running a bed & breakfast, we never found time to bathe our Jack Russell Terrier and Golden Retriever, so we were delighted when a local businesswoman offered the service. She had an old van that she had converted into a makeshift mobile pet grooming service. We have taken this simple concept of a bathtub on wheels and turned it into Aussie Pet Mobile, Inc., the world's first mobile pet grooming service franchise."

The key differentiator for Aussie Pet Mobile is its mobility, providing the service at the customer's residence and time of convenience as opposed to requiring the customer to travel to a retail centre. "There are no nationally branded competitors and no franchises competing with Aussie Pet Mobile, only fragmented 'mom 'n' pop' operators," says Moses. "This emphasises the comfort and safety of the Aussie Pet Mobile professional and proprietary grooming system and space, and the fact that Aussie Pet Mobile pet groomers are fully trained, polite, professional, uniformed and extremely caring for animals."

Aussie Pet Mobile reports that demand for its service is strong in developed and developing countries wherever there is discretionary income. "This demand presents itself in both urban and suburban settings in both moderate and seasonal climates," adds Moses. "In the US, there is a strong customer base of dual income and active lifestyle families. These demographic groups appreciate the convenience, service and credibility of the Aussie Pet Mobile system. Additionally, the Aussie Pet Mobile system enjoys a very high rate of repeat business and thrives in all climates. Our franchisees operated successfully over the 2002/2003 winter - one of the worst in decades."

With over 300 franchises granted in the US, the company signed its first three Master Franchise agreements last year with companies in Canada, Mexico and Japan.

CANADA
Canadian Master Franchisee Arnaldo Vieira launched his pilot operation's first two vehicles in January, and is actively recruiting for the sub-franchisee network. "People are the same all over the world - they really like their pets and spend a lot of money on them," says Vieira. "There is a niche here that really wasn't being tapped into on a grand scale, Aussie Pet Mobile is a nice fit here."

Vieira originally approached Aussie Pet Mobile about the Master Franchise for Canada in February 2005, signing in April that year. "The whole set up is extremely professional," says Vieira. "The head office staff really care about making the business work. We have already received enormous interest in the concept here, and are averaging two to three quality franchise leads a week with minimal advertising. People love the concept and we are not having issues winning business - it's more a case of how fast we want to grow it."

The Master Franchisee's operation is based in Ontario, and for the moment he is concentrating on searching for sub-franchisees in the local area. "We launch our first franchise in May, and our plan is to open one or two per month from then on," reveals Vieira. "We have our head office set up in place, with a national groomer trainer, an operations manager and a vice president of sales, which mimics the US head office set up. The potential in Canada is huge - a minimum of 600 vans - and we are seeking single and multiple vehicle franchisees to help us meet our expansion goals."

MEXICO
A marketing and advertising specialist, Ernesto Burciaga discovered Aussie Pet Mobile at the International Franchise Exhibition in Washington D.C. in 2004. "There were no businesses like it in Mexico at that time," he reflects. "My wife and I love pets - we have dogs, cats and horses - and we knew that a lot of people in Mexico love pets too. We were impressed by how well organised Aussie Pet Mobile are, the quality of the mobile unit and the good track record they have in the US, and signed the Master Franchise agreement for Mexico in October 2004."

The concept immediately generated a lot of interest in Mexico, but the franchise package has required restructuring to become competitive and Burciaga is preparing to re-launch his franchisee recruitment programme this summer. "Our pilot operation is in profit and will serve as a model for our franchisees," he observes. "Once we have two or three franchisees on board we will start building our brand presence and we will generate repeat business through the quality of our service."

JAPAN
Representing K Style, Inc., Ichiro Fujita attended the Aussie Pet Mobile international training class with Yoshio Fujiyasu and Chiyuki Ojima after investing in the Master Franchise for Japan. "Many Japanese companies are constantly looking for new franchise models," reflects Fujita. "I was introduced to Aussie Pet Mobile by a franchise associate and I immediately thought it was a great concept for Japan, where the pet industry is growing in double digits and worth US$10 billion. Real estate costs are very expensive in Japan, so the mobility of the concept is a real strength, because it does not require a retail outlet. Also, the majority of dogs in Japan are small and require more maintenance and grooming. There are a few established competitors but with very limited systems - putting together the image, the system and the convenience of Aussie Pet Mobile creates an outstanding chance to succeed in Japan."

The Master Franchise deal was signed in June 2005, and the company-owned pilot currently has two vans in operation. "We are concentrating on expanding via sub-franchising, and have already participated at a franchise exhibition where we attracted 200 enquiries - the largest lead haul of any of the exhibitors," says Fujita. "Our brand is causing a lot of excitement in Japan, and our initial benchmark is to open 500 franchisees. We feel very confident that we can have up to 2,000 vans in operation in five to 10 years - the pet business is extremely strong in Japan."

K Style, Inc. is bringing its own experience of franchising, having been involved in various restaurant franchises, to the development of the business, but is also enjoying strong support from Aussie Pet Mobile head office. "I have been involved with many other franchises in the past, and without reservation I can say that Aussie Pet Mobile is the most well supported and committed to helping overseas franchisees," reflects Fujita. "Especially the CEO Ian Moses, who understands the needs and mentality of the international Master Franchisee very well. We've had two group visits from the head office - an operational management group to help set up our operations and a group of groomers to train our staff. The biggest challenge is to recruit quality groomers - they are important because repeat business is a very big factor in our success."

FURTHER EXPANSION
Entrepreneur magazine has ranked Aussie Pet Mobile number 92 in its prestigious top 500 franchise listings, number 16 in the top home-based franchises and number one in the miscellaneous pet business category this year. "Aussie Pet Mobile has been the number one franchise in its category for five consecutive years," reflects Moses.

"We were also included in the Franchise Times Fast 55 listing of the fastest growing new franchises in the US in 2005. This is an ideal Master Franchise opportunity for highly-driven executives seeking a change, for entrepreneurs with a background of successful business development, or established home service companies and franchises looking to expand their business into new areas. Our system features an excellent franchise development programme, operational software, system-wide intranet, ongoing equipment development, complete and specialised training for Master Franchisees in California and two in-country visits per year."

Aussie Pet Mobile is seeking to enter developed economies worldwide, identifying high levels of disposable income, a high number of too busy/dual income families and a propensity for residential services such as weekly maid/cleaning and lawn care services as indicators of a prime market. "Each grooming unit only scratches the surface of market potential in a single territory," says Moses. "There are markets simply waiting to be developed in Europe, Asia and Latin America."
This article appeared on page 1 of the Second Quarter 2006 edition of European Franchising
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